Deutsche Telekom and trade union ver.di have reached a provisional deal over 32,000 jobs the telecoms operator plans to cut in Germany.
A spokesman declined to give details of the agreement, saying negotiators from the two sides first had to go back to their respective organisations to get the deal approved.
The two bodies have until tomorrow afternoon to finally approve or reject the agreement. Ver.di was not immediately available for comment.
Deutsche Telekom shares rose on the news, trading 2.8 per cent higher at 1:45 pm and leading the gainers on Germany's blue-chip DAX index.
The planned job cuts - representing a fifth of Deutsche Telekom's German workforce - have sparked nationwide protests in Germany, where unemployment topped 5 million last month despite three years of labour market reforms.
But Europe's biggest telecoms operator says it needs to slim down in a tough competitive environment, especially at its fixed-line unit where traditional voice telephony is in a prolonged period of decline.
The company says the job cuts, which it plans to complete by the end of 2008, will bring it €1.7 billion in annual savings starting 2009.